In today’s briefing:
- Midea Group: Initial Thoughts on the Hong Kong IPO Listing
- PDD Holdings Inc.: How Are They Managing Competition and Consumer Demand? – Major Drivers
- Didi Invests $94 Million in Smart Cockpit Developer
- Travelsky (696 HK | HOLD | TP:HKD11.0): Making Good Progress
- iQIYI Inc.: Can The Expansion into Overseas Markets Be A Potential Game Changer? – Major Drivers
Midea Group: Initial Thoughts on the Hong Kong IPO Listing
- Midea Group Co Ltd A (000333 CH) is getting ready for a Hong Kong IPO listing, trying to raise at least US$3 billion.
- Midea Group is trading a relatively attractive valuations. It is trading at P/E of 11.8x, EV/EBITDA of 8.1x, and P/B of 2.5x based on 2024 consensus earnings estimates.
- In the past five days, Midea’s price is down 2.3%. Some investors have been selling shares in Midea due to concerns about higher discount price offered at HK IPO listing.
PDD Holdings Inc.: How Are They Managing Competition and Consumer Demand? – Major Drivers
- PDD Holdings, Inc. has shared their financial results for the second quarter of 2024 along with an overview of strategic actions and challenges.
- The company saw substantial revenue growth, with total revenue reaching RMB 97 billion, marking an 86% year-on-year increase.
- This significant growth stems mainly from robust online marketing and transaction services.
Didi Invests $94 Million in Smart Cockpit Developer
- Didi Global Inc. is investing 670 million yuan ($94 million) in an affiliated firm of digital mapping company NavInfo Co. Ltd. (002405.SZ -3.09%) and has moved its team responsible for smart cockpit development to the venture, as the Chinese ride-hailing giant takes another step away from carmaking to streamline its business.
- Beijing-based Didi’s smart transportation arm will take a 16.46% stake in AutoAI (Nanjing) Technologies Co. Ltd., becoming its second-largest shareholder, NavInfo said in a Shenzhen Stock Exchange filing dated Wednesday.
- NavInfo, AutoAI’s largest shareholder, will also invest an additional 100 million yuan in AutoAI, diluting its stake from 30.29% to 27.01%, the filing said.
Travelsky (696 HK | HOLD | TP:HKD11.0): Making Good Progress
- 1H24 results was above expectation and showing good signs of cost control and topline recovery. We expect the momentum to continue.
- Air traffic in China continues to grow strongly, with domestic travel leading the way. International traffic is picking up momentum, but still 23% gap to pre-Covid’s numbers.
- Revised fair value of HKD11.10 (+18% UPSIDE) is based on 2025 PE 12.5x (1SD below mean).
iQIYI Inc.: Can The Expansion into Overseas Markets Be A Potential Game Changer? – Major Drivers
- iQIYI recently divulged its financial and operational results for the second quarter of 2024, revealing several intriguing aspects about its current business trajectory.
- This analysis aims to distill the substantial information provided during the earnings call and form an even-handed view on iQIYI’s performance and future prospects.
- iQIYI remains a significant player in the long-form video sector in China, holding a competitive edge in the drama and film categories.
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